Repurchase agreements (repos) will be the backbone of the new order after European economic and monetary union (Emu). The implications for the debt repo and securities lending markets in Europe are profound. There will be less impact on the nascent equity repo and securities lending markets, those are driven by the search for higher returns.
John Langton, chief executive of the International Securities Market Association (Isma) is bullish about the future of the debt repo market in Europe.
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